The key to success in trading is solely risk management.
📢 If you want to become a successful trader, please read this carefully 👇
“Your trade size should not exceed your wallet size, and always use margin responsibly. Risk management means that the amount you invest in any trade should not exceed your capital limit.”
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🔐 Fundamental principles of risk management (in simple terms):
1. Awareness of wallet size
→ Your total investment is your risk limit — never make a trade that could liquidate your entire account.
2. Trade size discipline
→ Despite leverage, do not keep your position size greater than your wallet.
→ For example:
If your wallet is $1,000, then a $3,000 position (at 3x leverage) is acceptable — but a $10,000 trade (at 10x leverage) is extremely risky.
3-Formula (for Trade Size)
Maximum trade size = Wallet size × Selected leverage
4-Formula for risk on each trade
Risk = Trade Size × (Entry Price – Stop Loss) / Leverage
→ Never take more than 1–2% risk.
📌 Golden Rule:
• Keep a maximum of 2% risk of your wallet on each trade.
• Use Isolated Margin so that one loss does not wipe out the entire account.
• Avoid trades that use the entire wallet — it's better to invest a small portion.